If you try to get a seller financed second mortgage you may have to call around to a bunch of local banks and credit unions.

Is there a way on loans to put some sort of contingency on the loan like, if I default that he will be liable without having the loan show up on his credit? 

From what I've seen, traditional financing through a small bank/credit union is probably my best bet.

You should have started th eeviction April 2nd.Unless your state is different than most a security deposit can not be used to cover rent.Serve the evictions on all three tenants and most likely they will pay up to protect their credit.

We both have good credit and established ties with a commercial lender who will do a non recourse loan for the other 80%. 

Not only that I rent to people that most people here would disqualify on grounds of credit history.

I have done a couple of lease options and it’s more geared towards credit repair.

I had always thought that making a public record of personal debt might violate credit laws but the clerk's office didn't know anything about that.I'm kind of stuck here and unsure which way to go.

Is the EMD then credited to the purchase price? 

None of the members in the LLC would like to put their individual credit on the line to obtain a loan as to not affect their personal credit.